Ashoka Mody is Visiting Professor of International Economic Policy at the Woodrow Wilson School of Public and International Affairs at Princeton University. He is a former mission chief for Germany and Ireland at the International Monetary Fund. He is the author of EuroTragedy: A Drama in Nine Acts.

How to deal with Eurozone Misfits in Southern Europe!
Common trait is surged unemployment and persistent large déficits more or less out of control! Austerity have tumbled down Economies hard.Deficits not compliant with actual Brussel views.After German coming election we all possibly see a new Merkelism 2.0.
GREECE:
The old Merkelism meant further kick down the road and piling more DEBTS. The new revised versión 2.0 will be different as allready hinted in German press!Will certainly provide tensión on GREECE staying in Eurozone.
A debt restructuring without haircuts causing Taxpayers anger is a way forward! HOW??? We have Cyprus Bail-In of Banks in fresh mind. Along these lines for Greece Banks??A new "Political Correctness policy " for Eurozone
Bail In "Euro rettung" needs to be formulated first priority for Merkel if remaining in power! Without any doubt further integration will be on hold for a long time. Banking Unión in a light versión only is expected! Less power in Brussel both Germany and France in agreement together with UK the three large EU contributers.Competetiveness and inter governmental agreements will be the coming agenda!

There is must be something you misunderstand. Greek banks have problems because of the Greek debt they possess; not for *any* other reason. The Greek one is a public debt bubble (private debt was at 125% of GDP at the beginning of the crisis). "Bail-in" means savers will be forced to pay for the public debt. How much of the 180% of GDP debt do you expect them to pay? This is a sure recipe for Greek economy's collapse and revolution. Not very smart in my opinion.

The EU/IMF expectation of Greek national property bargain away will rise in the next couple of years. To avoid Greek polls under such a doctrine for staying in eurozone, the current Greek government will attempt going early to the polls. Weaker backing for keeping Greece in eurozone in the next German government and deceiving preponderance of a pro-eurozone government in Greece, or even a government that would attempt to negotiate, will get us to the "political and legal turmoil" the author expects.

Such turmoil could be avoided. A middle-east war, or partial Greek debt bailout through ESM may be attempted in this direction (or if political turmoil arises to reduce its market impact for eurozone sovereign debt). The German government that will result from this election will straggle to get the debt/deficit numbers in eurozone country constitutions. Then, before the next German elections, there will be talk about complementing the treaties. Eventually, by 2020, eurozone may *start* the process of a banking union. The major unpredictable factor in this process is, of course, the global economy slowdown...

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